January 13, 2016, Introduced by Senators JONES, JOHNSON, KNEZEK, HERTEL and ANANICH and referred to the Committee on Judiciary.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 3011.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3011. (1) Notwithstanding any other provision of this
act, an insurer of a building or other structure on real property
shall not pay a claim of $2,000.00 or more for loss or damage
caused by fire or explosion to an insured building or other
structure until a report under subsection (2) has been submitted
and the insurer has received from the insured a copy of the report.
(2) If an insured building or other structure suffers loss or
damage caused by fire or explosion, the insured shall submit to the
fire or law enforcement authority designated by the city, village,
or township a report prescribed by the department in conjunction
with the bureau of fire services created in section 1b of the fire
prevention code, 1941 PA 207, MCL 29.1b, that requires information
concerning the building or structure fire or explosion.
(3) This section does not apply to accidental fires or
explosions as determined by the insurer or the fire or law
enforcement authority designated by the city, village, or township.
If the insurer or the fire or law enforcement authority designated
by the city, village, or township determines that the fire or
explosion may not be accidental, the insurer or the fire or law
enforcement authority designated by the city, village, or township
shall notify the insured of the requirement for a report under this
section by not later than 30 days after the determination by the
insurer or the fire or law enforcement authority designated by the
city, village, or township.
(4) This section applies only if the fire or law enforcement
authority responsible for investigating the fire or explosion is
located in a city, village, or township described in subsection (8)
and if the city, village, or township, acting under a resolution by
its governing body, notifies the director in writing of both of the
following:
(a) That the city, village, or township has elected to receive
the reports prepared under subsection (2).
(b) The name and address of the fire or law enforcement
authority designated by the city, village, or township to receive
reports prepared under subsection (2).
(5) The director shall prepare and distribute a list of all
cities, villages, and townships that have elected to apply this
section to all insurance companies transacting insurance that
provides coverage for loss by fire to buildings or other structures
in this state.
(6) A city, village, or township may be added to the list
prepared under subsection (5) by submitting a written request
containing the information required under subsection (4) to the
director. If a written request is received, the director shall
prepare and distribute an amended list indicating the addition. The
addition is effective on the date specified by the director in the
amended list. The director shall notify the city, village,
township, and all insurers that issue policies in this state that
provide coverage for loss by fire to buildings or other structures
of the effective date of an addition, which must be not less than
30 days after receipt of the notice by the insurance company. This
section does not apply to any loss that occurred before the
effective date of the addition.
(7) A city, village, or township may request to be deleted
from the list prepared under subsection (5) or may cease to apply
this section for a period of not less than 6 months on not less
than 30 days' written notice to the director. After receipt of a
request to be deleted from the list, the director shall prepare and
distribute an amendment to the list indicating the deletion. The
deletion is effective on the date specified by the director in the
amendment. The director shall notify the city, village, township,
and all insurers that issue policies in this state that provide
coverage for loss by fire to buildings or other structures of the
effective date of a deletion, which must be effective not less than
30 days after receipt of the notice by the insurance company. A
city, village, or township shall continue to apply this section to
any loss that occurred before the effective date of the deletion,
notwithstanding the deletion.
(8) A city, village, or township may elect to apply this
section as provided in subsection (4) and as follows:
(a) If the city, village, or township is located in a county
with a population of 425,000 or more.
(b) If the city, village, or township is located in a county
with a population of less than 425,000 and the city, village, or
township has a population of 50,000 or more.
(9) There is no liability on the part of, and a cause of
action does not arise against, an insurer or an agent or employee
of an insurer for withholding money in the course of complying with
or attempting to comply with this section.